Morgan Stanley's Michael Wilson expects the current equity correction to end as major risks, including the U.S. midterm elections, clear. Wilson projects a near-term S&P 500 downside target of 7,100–7,200, with a year-end base case of 8,000. He identifies AI financing concerns, midterm elections, and tightening financial conditions as key catalysts. Wilson notes that while liquidity remains the biggest near-term risk, a potential Fed pivot could trigger a market rebound, citing historical trends where midterm elections are followed by strong 6–12-month equity returns.